Daily Afternoon Report 17.05.2016

The U.S. dollar rose against its Canadian counterpart on Tuesday, helped by the release of upbeat U.S. economic reports and as disappointing Canadian manufacturing sales data weighed on the local currency.

The greenback found support after the U.S. Commerce Department said that consumer prices rose 0.4% in April, compared to expectations for a 0.3% gain and after an increase of 0.1% in March.

Year-over-year, consumer prices were 1.1% higher last month, in line with expectations.

Core consumer prices, which exclude food and energy costs, increased as expected in April by 0.2%.

A separate report showed that U.S. housing starts rose 6.6% to 1.172 million units in April, compared to expectations for an increase to 1.127 million units.

Building permits rose 3.6% to a 1.116 million units last month, compared to expectations for a 4.3% increase.

At the same time, Statistics Canada said that manufacturing sales declined by 0.9% in March, compared to expectations for a 1.8% drop.

Manufacturing sales fell by 4.0% in February, whose figure was revised from a previously estimated 3.3% slide.